Diego Simeone has signed a new five-year deal at Atlético Madrid, the Primera Division side have announced.

The 44-year-old Argentinian has been linked with several Premier League clubs – most notably Manchester City in recent weeks - but he has now ended speculation over his immediate future.

The defending Spanish champions Atlético, who finished runners-up in last year’s Champions League, are currently fourth in La Liga, nine points off the leaders Barcelona, but Simeone is convinced the club can get back to the top. “I choose to be here because I am convinced that the club will continue to grow,” he told the Spanish media.

The decision to stay until 2020 is a big statement from Simeone, who has been drawing admiring glances for his achievements in the Spanish capital on a relatively meagre budget.

However, shortly after he announced his new deal, Manchester City sources categorically denied that the club made a bid for Simeone’s services or that they were interested.

Since taking over at Atléti in December 2011 Simeone has overseen a consistently strong challenge to the duopoly of Barcelona and Real Madrid, winning a domestic league title, the Copa del Rey and the Spanish Super Cup.

Simeone’s impact has also been felt in Europe, with his side winning the Europa League in 2012, embarrassing Chelsea 4-1 in the Super Cup later that year before reaching last season’s Champions League final.

“Ahead of us we can look forward to a new stadium, there is a great deal of excitement,” he added. “The club keeps growing. I’ve made a decision to stay where I am and decisions are sometimes difficult to make in life.

“Fortunately I’ve been able to make this decision as I see a club that is moving forward, I see eagerness to grow and people willing to collaborate. We all love Atlético Madrid, and we all want to grow together.”

Atlético greeted the announcement with a banner of Simeone dominating their website and the hashtag #Simeone2020 celebrating his renewal.

The club president, Enrique Cerezo, echoed those sentiments, saying: “Nobody embodies the values of our club more than Simeone.

“Passion, effort, nobility, work, solidarity, courage, heart … he showed in his years of football, where he gave himself [IN BOTH]body and soul in the defence of Atlético colours.”